Land Price and Intra-Country Industrial Relocation in China -- Theory and the Yangtze Delta Area Case

The Chinese Economy, Vol. 46, No. 2, March-April, 2013, pp. 54-73

Posted: 1 Oct 2013

See all articles by Gene Hsin Chang

Gene Hsin Chang

University of Toledo

Changliu Jiang

Independent

Kathryn J. Chang

Sonoma State University

Bhuiyan Alam

Independent

Date Written: April 15, 2012

Abstract

This study investigates the major role played by the high land price in the current massive intra-country industrial relocation from coastal to inland areas in China. It develops a conceptual model to explore the causalities between urban expansion, land price and coastal-to-inland business relocation. We demonstrate that the relocation is mainly driven by the high land price that results from urban expansion. We have conducted our research based on in-depth field studies in several representative relocating firms in the Yangtze Delta area. The findings derived from these case studies not only support the theoretical model but also empirically validate the hypothesis.

Keywords: Industrial, Relocation, Land Cost

JEL Classification: R10, O57, R14, R3, O18

Suggested Citation

Chang, Gene Hsin and Jiang, Changliu and Chang, Kathryn J. and Alam, Bhuiyan, Land Price and Intra-Country Industrial Relocation in China -- Theory and the Yangtze Delta Area Case (April 15, 2012). The Chinese Economy, Vol. 46, No. 2, March-April, 2013, pp. 54-73, Available at SSRN: https://ssrn.com/abstract=2333257

Gene Hsin Chang (Contact Author)

University of Toledo ( email )

Department of Economics
Toledo, OH 43606
United States
419-530-4677 (Phone)
419-530-7844 (Fax)

Changliu Jiang

Independent ( email )

Kathryn J. Chang

Sonoma State University ( email )

1801 East Cotati Avenue
Rohnert Park, CA 94928
United States
7076642400 (Phone)

Bhuiyan Alam

Independent ( email )

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